Covered call assignment avoidance with five techniques. Roll up and out for a credit, pick lower deltas, dodge ex-dividend dates, and keep your shares.
Covered call assignment avoidance with five techniques. Roll up and out for a credit, pick lower deltas, dodge ex-dividend dates, and keep your shares.
TL;DR Covered call delta selection is the single most important decision you make on every trade. It determines income, assignment risk, and how much upside you keep. 0.20 delta keeps the shares (about 80 percent retention rate) but pays modest premium of 6 to 8 percent annualized. 0.30 delta is the income sweet spot for… Continue reading How to Use Delta to Select the Perfect Covered Call Strike
